Commercial Contracts

Governing Law Clause

Also called: Choice of Law, Jurisdiction Clause

A clause choosing which jurisdiction's law applies and often where disputes must be heard.

Governing law and forum are related but distinct: one selects the legal rules, the other selects the courts. Both are typically negotiated together.

Why it matters: agreeing to another country's courts can make enforcing your rights uneconomic for anything but a very large claim, whatever the contract otherwise says.

Related terms

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Legal information, not legal advice. Rules differ by province and change over time. A licensed lawyer must review your matter.

Editorial status: Lawkin Editorial — pending independent legal review.

Governing Law Clause — Canadian legal glossary | Lawkin — Lawkin